The time value of money is represented by the

Question

Quizplus · Accepted Answer

The time value of money refers to the idea that money received in the future is worth less than money received today, due to the potential for earning interest or returns. This concept is represented by interest rates, as they reflect the cost of borrowing money or the return on investment. Options A and D (demand for loanable funds and terms of trade, respectively) are not directly related to the time value of money, while option B (inflation rate) is indirectly related, as inflation can impact the value of money over time.

The Time Value of Money Is Represented by the